The Senate Appropriations Committee held its first week of public hearings on
Governor Wolf’s proposed state budget for the 2016-17 Fiscal Year. The
Appropriations Committee heard detailed reports from several cabinet secretaries
and other officials over the four-day period of February 22-25, 2016. This
special edition of Harrisburg Happenings provides day-by-day highlights from
those hearings.

The Senate Appropriations Committee opened its three-week series of hearings
on the Governor’s proposed 2016-17 budget with an extensive discussion of the
Governor’s Budget Office/Executive Offices/Office of the Governor with Budget
Secretary Randy Albright. Issues discussed during the two-part hearing included:

Concerns about spending by the Administration that is not appropriated
by Legislature.

The Administration’s problematic plan to spend $200 million more than
what the Independent Fiscal Office projects to be available to the state.

The Administration’s continued claim of a “billion dollar education cut”
when school funding has increased every year.

Statistics proving that academic performance is not based on how much
tax money spent, but rather on how it is spent.

The problem of skyrocketing public pension costs taking money out of
classrooms.

Schools and critical care access hospitals that will be forced to close
due to the Governor’s line-item vetoes.

The negative impact of the Administration’s cuts of key funding for
farmers.

The feasibility of analyzing the cost of collective bargaining
agreements and their impact on the state budget.

Independent Fiscal Office Director Matthew Knittel briefed the committee
on the economic outlook for the coming fiscal year as well as debt levels
and general revenue trends. Committee members focused on the following
topics:

The impact of Governor Wolf’s proposed tax increases on senior citizens
and middle-class working families.

The long-term budget impacts of public pension costs and debt.

Projected economic activity and job growth in the state over the next
several years.

The Wolf Administration’s questionable spending during the budget impasse was
the main topic of discussion during the Senate Appropriations Committee’s
hearing with Pennsylvania Treasurer Timothy Reese. Other topics discussed during
the hearing included:

The potential consequences of unauthorized spending and spending
practices in other states during a budget impasse.

State Police Commissioner Colonel Tyree Blocker provided an update on the
cadet class cheating investigation at the State Police Academy during the
Appropriations Committee budget hearing on the Pennsylvania State Police and the
Office of Homeland Security.

Other issues discussed during the hearing included:

Funding for future cadet classes.

Current and projected complement of troopers and the impact of impending
retirements.

Senate Appropriations Committee members questioned DEP Secretary John Quigley
about his department planning to implement new federal coal regulations despite
being stayed by a court ruling. Other topics included:

The availability of natural gas and pipeline infrastructure and the
possibility of extending drilling permits to boost natural gas development.

The Governor’s proposed Marcellus Shale tax and the existing community
impact fee.

Members of the Senate Appropriations Committee questioned Department of
Community and Economic Development Secretary Dennis Davin regarding the impact
of funding delays created by the governor’s budget vetoes.

Other topics included:

Efforts to create and retain manufacturing jobs and ways to make
Pennsylvania more business-friendly to attract employers.

Ways to increase tourism and attract new businesses to the state.

Military base closures in Pennsylvania.

The impact of the natural gas industry on economic development and job
growth.